A UESC under 42 U.S.C. 8256, is a contracting vehicle that allows utility companies to provide their federal customers with comprehensive energy-efficiency, water conservation, and demand-reduction services. Federal agencies are ized and encouraged to participate in these programs. In a UESC, the utility provides analysis, design, installation and, when necessary, arranges financing. Agencies may implement a UESC with no initial capital investment or may use appropriated funds strategically to maximize the impact of the projects.
Section 432 of 42 U.S.C. 8253 izes agencies to combine appropriations and financing. When a project is financed, the financed amount is repaid over the contract term from cost savings generated by the project.
- Government Program with simple payback up to 25 years
- Intended for Federal facilities improvements
- Must reduce total energy consumption
- Must be provided by the local utility company
- Projects are paid for by energy savings